Economics of Inclusionary Development for the Urban Land Institute

A growing number of communities are turning to their zoning authority to boost workforce and affordable housing supply through inclusionary zoning, which allows cities to require developers to provide affordable housing units as part of their market rate development projects. The Urban Land Institute’s Terwilliger Center for Housing worked with ECONorthwest to conduct a national study of the development incentives that some local governments provide to offset negative impacts on development that result from inclusionary requirements. The evaluation tested the potential impacts of different incentives on development feasibility across building types and market conditions. This document serves as a best practices guide to understanding the impacts of public policies on development feasibility.